Directors’ Report Remuneration Framework Changes Introduced in 2023 As disclosed last year, the following changes were made to the STI plan in 2023: • Introduction of a global sustainability measure with a weighting of 5%. This measure was introduced to focus our Executives on establishing a robust program governance process, reducing CO2 emissions, incorporating sustainable design in our new facilities, and engaging with our supply partners to achieve a low emission supply chain; and • To align with our financial guidance approach, the NPAT STI metric was replaced with NPATA. The Board believes this measure provides shareholders with improved transparency on the underlying performance of the business. Remuneration in 2024 Executive KMP As discussed in prior year Reports and across investor meetings, the Board continues to review and adjust the reward of Executive KMP to drive positioning towards the median of our global pharmaceutical/biotechnology peer group. For 2024, the Board has determined that in line with our global workforce: • Dr McKenzie will receive a 3.5% increase to Fixed Reward and no change to his STI or LTI target. This increase positions Dr McKenzie at 74% of the median of our global pharmaceutical/biotechnology peer group; and • Ms Joy Linton, our Chief Financial Officer, will receive an increase to Fixed Reward of 3.95%, inclusive of the superannuation guarantee increase applied at 1 July 2023. Ms Linton will have no change to her STI and LTI targets. Ms Linton’s position against the global pharmaceutical/ biotechnology peer group will be 70% of the median. NED fees Following benchmarking against ASX12 NED remuneration, there will be an increase in fees of 3% for all Board and Committee roles, effective 1 July 2023. The increase enables CSL to offer a competitive fee to attract and retain experienced directors. The total amount payable to NEDs will remain within the existing fee pool approved by shareholders on 12 October 2016. Remuneration Framework Changes in 2024 In 2023, we received feedback from our shareholders and external stakeholders regarding the LTI ROIC measure. We value your feedback and from 2024 the ROIC performance period will change from seven years (four year look back/ three year forward look) to a three-year forward looking performance period. The ROIC gateway performance measure, which was previously introduced to address concerns about the impact of the four year look back, will not apply to the new three year forward looking measure. Additionally, an adjustment will be made to the EPS growth LTI metric – we will move fromNPAT to NPATA to align with the financial guidance we provide externally. Review of the Executive Remuneration Framework in 2024 In competing for talent in a global market, it is critical that we have a remuneration framework that attracts and retains high quality talent to deliver on our strategy and deliver results. In 2024, the Board will continue to evaluate the Executive KMP remuneration framework to ensure it remains competitive with our global pharmaceutical/biotechnology peers. A key focus will be the further review of our LTI program. As we talk to our stakeholders over the coming months, we will further share our thinking and seek feedback. Thank you to my fellow HRRC members and thank you for supporting CSL and the patients we serve around the world. Dr Megan Clark AC Chair Human Resources and Remuneration Committee Subsequent to the publication of this letter on 15 August 2023, the Board has made the decision not to adjust the EPS measure for LTI awards to be granted in 2024. The EPS measure will continue to use NPAT as opposed to NPATA. CSL Limited Annual Report 2022/23 86
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